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Exercise 14A-6 (Algo) Basic Present Value Concepts (LO14-7) The Caldwell Herald newspaper reported the following...

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Exercise 14A-6 (Algo) Basic Present Value Concepts (LO14-7) The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby won the week's grand prize totaling $1.3 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $65,000 each, Click here to view Exhibit 148-1 and Exhibit 148-2. to determine the appropriate discount foctor(s) using tables. Required: 1. if Mr. Ormsby can invest money at a 7% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.) Present value

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